Bitmine Chairman Tom Lee said the current crypto bull market could be driven by a stronger core theme than in prior cycles, pointing to tokenization as a market opportunity that is larger than earlier retail-led narratives. He compared several past phases of the market, saying the 2016 to 2017 bull run was dominated by retail participants, while the 2019 to 2021 cycle was largely fueled by NFTs and also centered on retail demand. Last year, he said, the major theme was the rapid growth of stablecoins.
Lee argued that the bigger force in the current cycle is the move to bring real-world assets, or RWA, and traditional financial assets on-chain. He put the size of global liquid assets at about $200 trillion, with stocks, bonds, and credit accounting for roughly $160 trillion of that total. If 10% of those assets were to move on-chain, he said, that would represent a market of about $16 trillion. Lee also said that for every $1 of assets tokenized or locked into an L1 blockchain ecosystem, that blockchain typically gains about $1 in value.
Bitmine Chairman Tom Lee said the current crypto bull market may have a stronger core driver than earlier cycles, arguing that tokenization offers a potential market far larger than past retail-led narratives.
Lee compared the main themes of past cycles
Lee said the 2016 to 2017 bull market was driven mainly by retail participants. He described the 2019 to 2021 cycle as one led by NFTs, again with retail investors at the center. Last year, he said, the dominant theme was the rapid expansion of stablecoins.
He sees RWA and traditional assets moving on-chain as the bigger catalyst now
According to Lee, the larger force in the current cycle is the on-chain migration of real-world assets, or RWA, and traditional financial assets. He said global liquid assets total about $200 trillion, and that stocks, bonds, and credit make up roughly $160 trillion of that amount.
Lee added that if 10% of those assets were tokenized on-chain, the addressable market would be about $16 trillion. He also said that for every $1 of assets tokenized or locked in an L1 blockchain ecosystem, that blockchain typically creates about $1 in value.
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